Nouveau Monde Graphite Inc · TSX:NOU
Nouveau Monde Graphite — Investor Presentation (February 2024)
49 slides from Nouveau Monde Graphite's investor presentation, February 2024
Slide 1: Green Battery Materials to Power the Clean Energy Transition
GREEN BATTERY MATERIALS TO POWER THE CLEAN ENERGY TRANSITION Projected to be North America’s largest, vertically integrated production of natural graphite to provide battery/EV manufacturers with carbon-neutral active anode material February 2024
Slide 2: Cautionary Statements Regarding Forward Looking Information
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION This presentation contains forward-looking information and forward-looking statements (collectively, “forward-looking statements”), which relate to future events or future performance and reflect management's expectations and assumptions re
Slide 3: Market and Industry Data; Cautionary Note to United States Investors
MARKET AND INDUSTRY DATA Market and industry data presented throughout this presentation was obtained from third party sources and industry reports, publications, websites and other publicly available information. The Company believes that the market and industry data presented throughout this prese
Slide 4: Powering the Clean Energy Transition
POWERING THE CLEAN ENERGY TRANSITION NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 4 + PROPRIETARY & CONFIDENTIAL
Slide 5: The Clean Energy Megatrend
+ THE CLEAN ENERGY MEGATREND 41% » Governments globally are phasing out sales of internal combustion vehicles ENERGY STORAGE − Europe: 100% EVs as early as 10-YEAR CAGR 2025 in some jurisdictions − China: 80% of service EVs by 2025, 100% EVs by 2035 Energy security and grid − UK: 100% EVs by 2030 re
Slide 6: A Sustainable Source of Battery Material to Meet Rapidly Growing Demand
A SUSTAINABLE “Electrification of everything” and electric vehicle (EV) adoption driving SOURCE OF exponential demand growth for natural graphite anode material BATTERY MATERIAL TO North America’s largest and most advanced operation providing a localized and carbon-neutral alternative to Chinese sup
Slide 7: Planned to Be North America's Largest Integrated Natural Graphite Producer
+PLANNED TO BE NORTH AMERICA’S LARGEST INTEGRATED NATURAL GRAPHITE PRODUCER MATAWINIE UATNAN MINE & CONCENTRATOR MINE & CONCENTRATOR High-purity flake graphite Large volume production of flake graphite concentrate Mine and concentrator to produce 103 ktpa of high-purity flake concentrate UATNAN Mine
Slide 8: Vertical Integration to Deliver Lithium-Ion Battery Active Anode Material
+VERTICAL INTEGRATION TO DELIVER LITHIUM-ION BATTERY ACTIVE ANODE MATERIAL » Planned to become the North America’s largest and fully integrated lithium-ion battery anode material producer Integrated Anode » Carbon neutrality across its entire production value chain – “green” Material Producer operat
Slide 9: The Potential Evolution of NMG as a Global Anode Material Leader
+ THE POTENTIAL EVOLUTION OF NMG AS A GLOBAL ANODE MATERIAL LEADER OUR PLAN OUR GOAL OUR VISION PHASE 1 PHASE 2 PHASE 3 2017-2023 2024-2027 2028+ “DE-RISKING” EXECUTION GROWTH » Demonstration facilities for » Matawinie Mine: ~103 ktpa of » Develop the Uatnan Mining fully-integrated operations high-p
Slide 10: ESG Principles Embedded in the Business Model
+ ESG PRINCIPLES EMBEDDED IN THE BUSINESS MODEL Zero-Harm Philosophy Leadership in Action Health, safety, and environmental Governance and accountability stewardship come first » Experienced and international Board guiding the disciplined » 3.63 OSHA Recordable Incident Rate1 development of the busi
Slide 11: Only Producer in Industry Leading Segment
+ ONLY PRODUCER IN INDUSTRY LEADING SEGMENT Independent assessment of ESG performance carried out by Benchmark ̶ 79 sustainability indicators reviewed ̶ 60 producers NMG is the sole producer with demonstrated environmental and ethical practices ̶ Rating supports customers’ ESG requirements for respo
Slide 12: Carbon Neutral Yesterday, Today and Tomorrow to Support Global Decarbonization
+ CARBON NEUTRAL YESTERDAY, TODAY AND TOMORROW TO SUPPORT GLOBAL DECARBONIZATION » Historical carbon neutrality secured and climate action plan to transition to Net Zero by 2030 » All-electric open-pit mine and processing facilities underpinned by clean hydroelectricity − Partnership with Caterpilla
Slide 13: Industry-Leading Climate Change Impact
+INDUSTRY-LEADING CLIMATE CHANGE IMPACT » Cradle-to-gate ISO-compliant life Extraction and Advanced GWP GWP of NMG’s CSPG cycle assessment verified by 3rd concentration manufacturing (kg CO2 eq per kg) (kg CO2 eq per kg) party China China 14.1 » Hydroelectricty leveraged at Mozambique U.S. 6.1 minin
Slide 14: An Exceptional Market Opportunity
AN EXCEPTIONAL MARKET OPPORTUNITY NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 14 + PROPRIETARY & CONFIDENTIAL
Slide 15: NMG Positioned to Provide a Localized, Carbon-Neutral Alternative to China
+ NMG POSITIONED TO PROVIDE A LOCALIZED, CARBON-NEUTRAL ALTERNATIVE TO CHINA » Graphite mines exist across Feasibility the globe – but 99% is Study supports production of ~10% processed in China for of global supply battery anode materials CANADA » Global battery and EV ~1% of flake manufacturers se
Slide 16: Geopolitics Favor NMG
GEOPOLITICS FAVOR NMG » New restrictions on Chinese graphite exports − Battery/EV manufacturers pressed to secure volumes and commercial agreements with graphite suppliers outside China − Manufacturers are starting to build up inventories » US targets China as a “foreign entity of concern” − Battery
Slide 17: Graphite Is Fundamental to Every Lithium-Ion Battery
+GRAPHITE IS FUNDAMENTAL TO EVERY LITHIUM-ION BATTERY: 1.2 kg of graphite / kWh » Graphite dominates half the lithium-ion battery LFP NMC − For every tonne of lithium, 1.5 tonne of graphite is required » Every manufacturer has a specific composition mix to its battery chemistry Lithium 17% Lithium 1
Slide 18: Graphite Demand Growth Is Expected to Outpace Other Battery Metals
GRAPHITE BATTERY RAW MATERIAL DEMAND GROWTH (kt) 11 747 DEMAND 12 000 10 941 GROWTH IS 11 000 EXPECTED TO 10 000 OUTPACE OTHER 9 000 BATTERY METALS 8 116 8 000 7 554 7 000 410 BATTERY GIGAFACTORIES 5 802 IN THE PIPELINE FOR A 6 000 COMBINED CAPACITY OF 5 000 4 679 9.3 TWh BY 2030 4 292 3 993 4 000 O
Slide 19: North America Ramping Up Capacity: 1,456 GWh by 2030
+AT THE MARKET’S DOORSTEP – NORTH AMERICA RAMPING UP CAPACITY: 1,456 GWh BY 2030 AB FD KP PS SS* AT FR LG CT GO MB* SK CU* GM MV ST* EL HD NV TE EN HY ON TY EV* IM PA* VW *TBC A factory has been announced, but its exact location in the United States is to be confirmed. BATTERY MANUFACTURERS Industry
Slide 20: And So Is Europe: 1,300 GWh by 2030
+AND SO IS EUROPE: 1,300 GWh by 2030 AC IN PO SV CL LC PR TA CT LG RE TE EL ME RO VK EN MR SS VO EV NB SK VW* FR NV *TBC A factory has been announced, but its exact location in Eastern Europe is to be confirmed. BATTERY MANUFACTURERS Industry announcements & Benchmark Mineral Intelligence, November
Slide 21: Demand Expected to Outstrip Supply
DEMAND SUPPLY SHORTAGES EMERGING EXPECTED TO AS EV DEMAND RAMPS UP OUTSTRIP SUPPLY Market projection for graphite demonstrates structural deficit: » New production needed to come online to meet the strong growth Projected start of market Phase-2 production » NMG will be well positioned in what we ex
Slide 22: Inflation Reduction Act
+INFLATION REDUCTION ACT $370 billion US dedicated to the climate agenda » Incentives for the purchase of electric vehicles » Measures for the development of charging infrastructure » Eligibility criteria for credits related to battery composition, component source − After 2024, critical minerals th
Slide 23: Facilitating a Green, Local Supply of a Strategic and Critical Material
FACILITATING A GREEN, LOCAL SUPPLY OF A STRATEGIC AND CRITICAL MATERIAL NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 23 + PROPRIETARY & CONFIDENTIAL
Slide 24: Fully-Integrated Development Supported by Phase 1 Operations
+ FULLY-INTEGRATED DEVELOPMENT SUPPORTED BY PHASE 1 OPERATIONS MATAWINIE BÉCANCOUR High-purity flake Advanced materials for energy and niche applications Each step is engineered to Flake graphite Spherical graphite Purified graphite Coated spherical purified graphite add value and CONCENTRATION SHAP
Slide 25: Matawinie Mine
+ PHASE 2 MATAWINIE MINE A world-class mine and concentrator, PHASE 2 within only 120 km of Montréal » Responsible mining operations with all-electric fleet, innovative tailings management, extensive water and biodiversity protection program, plus progressive reclamation » Situated within the commun
Slide 26: Phase-2 Matawinie Mine: Construction-Ready Thanks to Preparatory Work
+PHASE-2 MATAWINIE MINE: CONCRETE-READY THANKS TO PREPARATORY WORK Access road Environmental Deposit & infrastructure demonstration site Future concentrator Future vegetal stockpile NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 26 + PROPRIETARY & CONFIDENTIAL
Slide 27: Advanced Manufacturing Underpinned by Strategic Location and Proprietary Technologies
+ ADVANCED MANUFACTURING UNDERPINNED BY STRATEGIC LOCATION AND PROPRIETARY TECHNOLOGIES We believe Bécancour is an ideal location, with exceptional infrastructure, for NMG’s operations » Phase-1 purification plant operating within Olin’s facility » Proprietary green thermochemical purification techn
Slide 28: Bécancour Battery Material Plant
Purification PHASE 2 PHASE 2 PLANS BÉCANCOUR BATTERY MATERIAL PLANT Scalable commercial production with significant expansion potential onsite Coating Shaping Production capacity for ~43 ktpa of active anode material and ~3 ktpa of purified jumbo flake » Advanced manufacturing facility regrouping al
Slide 29: Uatnan Mining Project: Among the World's Largest Graphite Projects in Development
+ PHASE 3 UATNAN MINING PROJECT: AMONG THE WORLD’S LARGEST GRAPHITE PROJECTS IN DEVELOPMENT » Located in Northern Québec, in a region renowned for its resources and associated industry − Accessible year-round by highway 389 and logging roads » Property wholly owned (100%) by NMG » Open-pit operation
Slide 30: Located in a Premier Operating Jurisdiction in North America
+ LOCATED IN A PREMIER OPERATING JURISDICTION IN NORTH AMERICA QUÉBEC’S COMBINATION OF STRATEGIC ADVANTAGES The Québec Government Established, sustainable Abundant, affordable Rich in critical and Attractive and stable ecosystem and ongoing and clean energy (36% strategic minerals and the fiscal and
Slide 31: Industry and Technology Partners Support Our Strong Internal Team
INDUSTRY AND » Our strong internal technical team consisting of 110+ professionals TECHNOLOGY support our growth and continued innovation: PARTNERS − 7 PhD, 3 MSc, 35 engineers − Decades of expertise in graphite production acquired at leading operators including SUPPORT OUR Imerys, SGL Group and BTR
Slide 32: Commercial Outlook & Financial Parameters
COMMERCIAL OUTLOOK & FINANCIAL PARAMETERS NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 32 + PROPRIETARY & CONFIDENTIAL
Slide 33: Product Qualification Key for Battery Materials
+ PRODUCT QUALIFICATION KEY FOR BATTERY MATERIALS » Every manufacturer has distinctive specifications STRINGENT QUALIFICATION PROCESS for optimal performance based on its battery chemistry 1 kg to 1 t 1 t to 10 t 40-80 t Focus on: Focus on: Focus on: » NMG commercial discussions supported by Specifi
Slide 34: Commercial Agreement: Panasonic Energy & Tier-1 Battery Manufacturers
+COMMERCIAL AGREEMENT: PANASONIC ENERGY & TIER-1 BATTERY MANUFACTURERS » MoU based on multi-year offtake for active anode material − MoU/Offtake agreement to provide pathway for finalizing product qualification » Advanced, multi-year offtake discussions with other tier-1 battery manufacturers » Sign
Slide 35: Path to Commercial Production
ORE-TO-BATTERY-MATERIAL PROJECT DESIGN PATH TO Mineral resource Technology development Integrated feasibility First Nations + community engagement & public COMMERCIAL definition for beneficiation study consultation PRODUCTION TECHNICAL ADVANCEMENT Assembling Mining Land purchase Phase-1 expe
Slide 36: Summary of Phase-2 Economic Highlights
+SUMMARY OF PHASE-2 ECONOMIC HIGHLIGHTS ECONOMIC HIGHLIGHTS (in CAD*) MATAWINIE BÉCANCOUR INTEGRATED Unit Feasibility Metrics Pre-tax Net Present Value (NPV) (8 % discount rate) 986 1,374 2,360 C$ million After-tax Net Present Value (NPV) (8 % discount rate) 571 1,010 1,581 C$ million Pre-tax Intern
Slide 37: Overview of Preliminary Economic Highlights: Uatnan Mining Project
PHASE 3 ECONOMIC HIGHLIGHTS Uatnan Mining Project OVERVIEW OF PRELIMINARY Pre-tax NPV (8% discount rate) C$ 3,613 M ECONOMIC After-tax NPV (8 % discount rate) C$ 2,173 M HIGHLIGHTS Pre-tax IRR 32.6% After-tax IRR 25.9% Pre-tax payback 2.8 years After-tax payback 3.2 years Concentrate selling price U
Slide 38: Sound Capital Structure and Research Coverage
SOUND MARKET INFORMATION (as at February 1, 2024)1 CAD USD CAPITAL Share price ($) 2.86 2.09 STRUCTURE Market capitalization ($M) Cash ($M)2 192 48.6 CAD 140 Well capitalized with strong Convertible debenture ($M) – funded3 67.7* 50 institutional support Basic shares (M) 67.1 Options (M) 4.9 Convert
Slide 39: Appendix
APPENDIX NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 39 + PROPRIETARY & CONFIDENTIAL
Slide 40: Shareholder Value Drivers
+ SHAREHOLDER VALUE DRIVERS » Piloting of fully-integrated Phase-1 operations to finalize engineering Disciplined execution of growth parameters of Phase 2, OPTIMIZE FEASIBILITY STUDY based on plan to establish a traceable, local supply of a critical battery Panasonic’s specs and support qualificati
Slide 41: Expected Shareholder Growth Drivers: Next 5 Years
+ EXPECTED SHAREHOLDER GROWTH DRIVERS: NEXT 5 YEARS » Commission FULLY-INTEGRATED PRODUCTION AT PHASE 2: Matawinie Mine and Bécancour Battery Material Plant » Execute a long-term cornerstone supply agreement with a future major customer » MAP PHASE 3 EXPANSION for natural graphite and anode material
Slide 42: A Unique and Scalable Graphite Source Underpins Our Integrated Operations
+ A UNIQUE AND SCALABLE GRAPHITE SOURCE UNDERPINS OUR INTEGRATED, FULLY-TRACEABLE OPERATIONS A huge graphite resource at Matawinie, provides NMG with expansion potential MINERAL RESOURCES & RESERVES WEST ZONE Mt Cg West Zone Measured 28.5 4.28% Indicated 101.8 4.26% Total Resources 130.3 4.26% Explo
Slide 43: Matawinie Updated Resource and Reserve Summary
+ MATAWINIE UPDATED RESOURCE AND RESERVE SUMMARY Current Pit-Constrained Mineral Resource Estimate for the West Zone(1) Current Resource (May 20, 2022) 7 Mineral Resource Category2 Tonnage (Mt)5,6 Grade (% Cg)3 Contained Graphite (Mt) Measured 28.5 4.28 1.22 Indicated 101.8 4.26 4.33 Measured + Indi
Slide 44: Innovative Model for Co-Disposal of Tailings
+ INNOVATIVE MODEL FOR CO-DISPOSAL OF TAILINGS FINAL SITE RESTORATION This innovative management solution is indicative of NMG’s unwavering focus on sustainable development and: » helps to avoid acid mine drainage » provides greater environmental and community safety over the long term YEAR 1 YEAR 1
Slide 45: Uatnan – A World-Class Deposit: Current Mineral Resource Estimate
+ UATNAN – A WORLD-CLASS DEPOSIT CURRENT MINERAL RESOURCE ESTIMATE Notes : 1. The Mineral Resources provided in this table were estimated IN-PIT CONSTRAINED MINERAL RESOURCES Tonnes (Mt) Grade (% Cg) Cg (Mt) by M. Rachidi P.Geo., and C. Duplessis, Eng., (QPs) of GoldMinds Geoservices Inc., using cur
Slide 46: Phase 2: CAPEX Costs
+PHASE 2: CAPEX COSTS Initial Initial CAPEX Breakdown (in CAD*) CAPEX Breakdown (in CAD*) Costs Costs Matawinie Mine CAPEX Bécancour Plant CAPEX Direct Costs 373,383,967 Direct Costs 631,071,605 Mine Development 52,487,610 Shaping 176,658,085 Mining Facilities 49,470,357 Purification 261,442,517 Pro
Slide 47: Phase 2: OPEX Costs
+PHASE 2: OPEX COSTS Cost per year % of OPEX Breakdown (in CAD*) Cost per tonne (1) (2) (LOM average) total costs Matawinie Mine OPEX Mining 17,330,983 168 30% Ore Processing 26,083,095 252 45% Tailings 5,655,610 55 10% General and Administration 3,750,866 36 6% Transport Cost to Bécancour 2,769,863
Slide 48: Climate Targets
+CLIMATE TARGETS » Maintain carbon neutrality status » Reduce as much as possible − Full electrification − Continuous improvement − Substitution of carbon-based materials − R&D − Industrial synergies and circular economy » Reach Net Zero by 2030 » Transparent disclosure Environmental footprint, comm
Slide 49: Green Battery Materials to Power the Energy Revolution
GREEN BATTERY MATERIALS TO POWER THE ENERGY REVOLUTION CORPORATE OFFICE NMG.com CONTACT 995 Wellington Street, Suite 240 Facebook Marc Jasmin Montréal (Québec) H3C 1V3 Twitter Director, Investor Relations Canada YouTube +1 450 757-8905 #993 LinkedIn mjasmin@nmg.com NMG.com + NYSE: NMG | TSXV: NOU |
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